YouTube Unveils New Plans To Monetize Its Service

YouTube, the video sharing website, has unveiled new plans to monetize its service through two new advertising concepts, Participatory Video Ads (PVA) and Brand Channels.

YouTube says that these concepts are the first step toward defining a new advertising model for video entertainment on the internet and are intended to complement YouTube’s current offerings which include banner ads, promotions and sponsorships.

Brand Channels allow marketers to create their own programming, customize visual content with logos and other graphics, and accumulate audiences. YouTube’s first Brand Channel partner is Warner Bros Records for Paris Hilton around her debut album, Paris.

The PVA is a user-initiated video advertisement with all of the YouTube community features enabled. Consumers can rate, share, comment, embed, and favorite advertising content that they find interesting, informative and entertaining. YouTube says that rather than interrupt a consumer’s experience, it has created a model which encourages engagement and participation. Advertisers also have the opportunity to participate and moderate discussions around their creative.

Chad Hurley, chief executive officer and co-founder of YouTube, said: “Our vision is to build a new advertising platform that both the community and advertisers will embrace. Our announcement today is just the beginning of the many new ad concepts we will be rolling out over the coming year.

“This new medium requires finding a balance between traditional online advertising and new creative approaches that engage consumers in an active way. Advertisers now have a highly-targeted opportunity for aligning their brands alongside the entertainment experience people are enjoying on YouTube.”

YouTube: www.youtube.com